First of all you should pick "Primary Display Driver." Also, make SURE you only have 16 bit color selected. THIS IS AN ABSOLUTE MUST! Voodoo 3's and below will instantly crash if set to 32 bit color. If this happens, try deleting video.cfg from the aces high settings directory.
Looks to me though that your current problem is that you don't have DIRECT X 6.1 or above. I would download Direct X 7a from
www.microsoft.com/directx This should fix your problem.
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bloom25
THUNDERBIRDS